The Exchange Rate and US Tourism Balance of Trade
AbstractThis paper investigates evidence on the effect of dollar depreciation on the US tourism balance of trade. Export revenue and import spending functions are estimated separately with structural vector autoregressive methods to better capture the dynamic adjustment to exchange rate shocks. Quarterly data cover the period of floating exchange rates from 1973 through 2007. Depreciation raises long term US export revenue but there is no effect on import spending.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18318.
Date of creation: Oct 2009
Date of revision:
balance of trade; exchange rate; tourism; structural vector autoregressive model; J-curve;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- F10 - International Economics - - Trade - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-07 (All new papers)
- NEP-IFN-2009-11-07 (International Finance)
- NEP-INT-2009-11-07 (International Trade)
- NEP-TUR-2009-11-07 (Tourism Economics)
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